5,000 jobs to be cut at Lloyds banking group

Lloyds Banking Group (LON:LLOY) has announced plans to axe 5,000 jobs by the end of next year, as the state-backed bank cuts costs further during the downturn.

The cuts will be lost on its insurance business and its mortgage division. The banking Group is created by Lloyds TSB and the controversial takeover of HBOS last year. 2,600 permanent jobs will be lost in the UK, Lloyds said today the rest will come from part time and temporary staff.

Lloyds buy out of HBOS at the height of the banking crisis last autumn has forced the Group to take billions in fresh capital from the UK taxpayer and, including today’s announcement, eliminate 13,000 jobs from a total of 129,000 staff employed in Britain. Because of the takeover they need to save £1.5bn in costs.

Lloyds last week announced that they will not to pay any staff earning over £39,000 this year a cash bonus. To read more on this story go to telegraph.co.uk.